South Korea’s Kospi index marked a historic milestone by opening at a fresh record, driving gains across Asia-Pacific markets. This upsurge comes amid rising oil prices fueled by increasing tensions between the U.S. and Iran. The geopolitical climate has intensified after President Donald Trump unequivocally dismissed Iran’s latest proposal aimed at resolving the ongoing conflict in the Middle East.
Iran, through its semi-official Tasnim news agency, communicated that its counteroffer to U.S. negotiators included demands for an end to hostilities and the lifting of sanctions imposed on Tehran. However, Trump firmly rejected this proposal, labeling it as “TOTALLY UNACCEPTABLE!” in a post on Truth Social. The response has heightened concerns about a prolonged conflict in the region.
Adding to the tensions, Israeli Prime Minister Benjamin Netanyahu affirmed that the war with Iran is “not over,” emphasizing that both the U.S. and Israel remain focused on curtailing Iran’s nuclear ambitions. Netanyahu’s remarks come just ahead of Trump’s anticipated trip to China later this week, where he is set to meet with Chinese President Xi Jinping.
The ongoing conflict, combined with Iran’s recent actions in the Strait of Hormuz, has significantly impacted global energy prices. As of 9:32 p.m. ET, West Texas Intermediate futures for June rose by 3.94% to $99.18 per barrel, while Brent crude futures for July increased by 3.49% to $104.83 per barrel.
In South Korea, the Kospi made a substantial gain of 4.70%, reaching a new record, while the smaller-cap Kosdaq experienced a slight decline of 0.30%. The index heavyweight, SK Hynix, noted a remarkable rise of 10.74%, mirroring the surge in U.S. chip-related stocks observed the previous Friday.
In Japan, the Nikkei 225 faced fluctuating trading conditions and ended marginally lower, whereas the Topix index saw a modest gain of 0.19%. Nintendo shares dropped by 5.54% as investors reacted to news of an impending price increase for Switch 2 consoles, coinciding with expectations of a decline in sales.
Australia’s S&P/ASX 200 index fell by 0.83%, while China’s CSI 300 recorded a gain of 0.58%. In Hong Kong, the Hang Seng index experienced a dip of 0.48%. Investors are also scrutinizing inflation data from China, which indicated that consumer and producer prices rose more than anticipated in April, driven mainly by increased commodity costs linked to the escalating Middle East conflict.
